Chapter 13 Payroll Payroll Time Card Employee Number

Chapter 13 Payroll

Payroll Time Card Employee Number Name Pay Period Ended Morning Afternoon Overtime IN OUT 7: 58 12: 02 12: 59 5: 06 8 7: 59 12: 00 12: 57 5: 01 8 7: 55 12: 01 12: 56 5: 02 7: 01 Hours Rate Amount Reg 88 12 $1, 056. 00 Overtime 4. 5 18 $ Total Hours 92. 5 Total Earnin gs IN Hours 81. 00 $1, 137. 00 OUT 9: 33 Reg 8 OT 2. 5

Some Definitions Total Earnings – the total amount of money that we have learned. This is also called GROSS PAY. This is before taxes. n Regular Time – If you are working for $5. 00 per hour then you take the number of hours and multiply it by the pay and that is what you get…. n

Definitions Overtime – is considered to be what you make plus half of that, so if you are making $5. 00 per hour then you would be making $7. 50 an hour during overtime pay. n $5. 00 + $2. 50 = $7. 50 per hour. n

Payroll Time Card (Partial) Employee Number Name Pay Period Ended Morning Afternoon Overtime IN OUT 7: 58 12: 02 12: 59 5: 06 8 7: 59 12: 00 12: 57 5: 01 8 7: 55 12: 01 12: 56 5: 02 7: 01 Hours Rate Amount Reg 88 12 $1, 056. 00 Overtime 4. 5 18 $ Total Hours 92. 5 Total Earnin gs IN Hours 81. 00 $1, 137. 00 OUT 9: 33 Reg 8 OT 2. 5

Please work on “On your Own” on page 315

Section 2 Taxes Payroll taxes – are taxes that are based on the payroll of the business. n Payroll – is that amount of money that is earned by its workers. n Businesses are required to hold back a certain amount of money from each of your paychecks and then pay that amount to the government. n

Withholding taxes from your paycheck W-4 is a from that when you get a job you fill this out that says how much in taxes do you want to hold back. n When you are in charge of and legally support a person we call them allowances. n The more the allowances the less taxes are taken from the paycheck. n

Please look on pages 318 and 319 n These are federal income tax withholding charts. It is based first on being single/married, then on how much you make per pay period, and then on how many allowances you have.

FICA Tax n Federal Insurance Contributions Act. (FICA) n n This is a tax that helps support a federal system for old age, survivors of the wars, disabilities and such. The two major taxes that are related to FICA are n n Social Security Taxes Medicare Taxes.

Tax rates for FICA Social Security is 6. 5% of Gross Earnings n Medicare is 1. 5% of Gross Earnings. n n These taxes also have a tax base. This means that after you make a certain amount of money you do not have to pay this tax anymore. $65, 400.

Please work on “On your Own” on page 321

Payroll Register (Page 322) Payperiod Ending December 15, 2003 Payroll Register Employees Name Earnings Regul ar Overtim e Deduction Total Fed Inc. Tax `Soc. Sec Tax Medi care Tax Healt h Insur Other Tota l Net Pay Check No. 72 62. 92 14. 52 45. 6 10 205. 04 762. 96 483 6. 83 1. 58 8. 41 96. 59 484 58. 06 22. 03 122. 09 486. 51 485 2. 12 4. 18 6. 3 72. 45 486 Marital Status No. of Allowances Aranda, Susan M 2 968 Drew Paul S 1 105 Hakala, Erik M 1 598. 4 Mendel, Ann S 1 78. 75 Selby, Rick M 4 1056 Yourng Justin S 1 906. 4 Totals Date of Payment December 15, 2003 3712. 55 10. 2 608. 6 22 78. 75 81 91. 2 20 1137 63 73. 91 17. 06 60 20 233. 97 903. 03 487 906. 4 103 58. 92 13. 6 38. 4 25 238. 92 667. 48 488 3803. 75 260 262. 76 72. 97 164 55 814. 7 3 2989. 02

Some Definitions you need to know. Payroll Register – keeps track of each of the employees for a certain pay period. n Earnings record – keeps track of a single employees earnings for the whole year. n Also keeps track of the total earnings so we can determine tax bases for certain taxes. n You must first do the Payroll Register and then the Earnings Record. n

Please work on “On your Own” on page 326

Section 4 Preparing Payroll Checks n Two checks are prepared each payroll. n We write a check to our payroll account and then the separate checks are written to the employees. n

Problems n 3 -1, 2, 3, 4, 5,